| 6.1 | Authorized Individuals and Material Risk Takers must undergo the Fit and Proper Process prior to their appointment, reappointment or contract renewal, as the case may be. The non-exhaustive list of Designated Functions is presented in Attachment 1 to the Standards. The list of positions should be reviewed in the context of the operations of the Licensee, in that, equivalent positions which may be titled differently within individual Licensees, need to be considered for Authorisation. The list is consistently under review and Licensees must keep abreast of updates to ensure compliance with the Regulation and Standards. |
| 6.2 | In applying the Regulation and Standards to Persons who hold or intend to hold Designated Functions, Licensees must consider the job description and requirements of the function and therefore not rely on the precise naming of the functions in Attachment 1.The Regulation and the Standards do not impose a requirement for a Licensee to havein place all functions listed in the List of Designated Functions.
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| | Approach
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| 6.3 | Licensees must incorporate the following into their processes for selecting Persons for Designated Functions or as Material Risk Takers:
| a. | Consideration of the duties and responsibilities of the position; | | b. | A selection process that allows for the assessment of the qualifications and experience of the Person in relation to the requirements of the position; | | c. | Verification of qualifications, experience, references and professional memberships; | | d. | Propriety checks, including personal, financial and professional; and | | e. | An assessment of how the Person contributes to the Collective Suitability of the Board, where applicable.
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| 6.4 | The Person must be made responsible for completing the prescribed forms and providing all supporting documentation and information to the Licensee, as far as possible. |
| 6.5 | The Licensee’s verification and authentication of information and documents must be comprehensively undertaken and include detailed checks to confirm accuracy. |
| 6.6 | The Licensee must sign the prescribed forms including the declarations, confirming that all required assessments and checks have been completed and that the Licensee has verified, as far as is reasonably possible, the information in the forms. |
| 6.7 | An application to the Central Bank for Authorisation must be submitted through designated CBUAE portals, where available, or official electronic mail accounts from Persons authorised by the Licensee to do so and must not be submitted from personal accounts. |
| 6.8 | Any false or misleading replies to questions in the forms or deliberate withholding of material information must be considered by the Licensee during the Fit and Proper Process as a strong indication that the Person lacks integrity. |
| 6.9 | Licensees must assess all necessary information to ensure that fit and proper assessments are comprehensive and accurate and provide confirmation that the Person has been found by the Licensee to meet the required criteria to fulfil the function. |
| 6.10 | The Fit and Proper Process for the heads of the internal Shari’ah audit and internal Shari’ah control departments shall be carried out in consultation with the ISSC. |
| 6.11 | Notwithstanding the requirement to conduct reassessments prior to the reappointment or renewal of contracts of Authorized Individuals, reassessments may be required where a need for one is triggered. Reassessments must be conducted by the Licensee in the following cases:
| a. | Where there are concerns regarding the fitness and propriety or suitability of the Person; | | b. | In the case of any event that may materially affect the fitness and propriety or suitability of the Person; | | c. | Where the Licensee is proposing to significantly change the responsibilities of the Designated Function; | | d. | As part of the review of the internal governance arrangements by the Board and/or Senior Management; | | e. | When the Licensee becomes aware that any information, documents, or responses to any of the questions in the prescribed forms or otherwise provided by the Person as part of the Fit and Proper Process may be inaccurate, erroneous or there are questions about their authenticity; or | | f. | Where there is evidence that the Person may have acted in a manner considered detrimental to the interests of the Licensee, its depositors, policyholders or participants or other creditors.
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| 6.12 | Additionally, the Central Bank may request a reassessment/s based on additional triggers including, when the Central Bank has cause to question the management and direction of the Licensee’s business or where the Licensee has breached any of its legal, regulatory and/or other compliance obligations. |
| 6.13 | The CBUAE requires Licensees to assess all necessary information to ensure that reassessments are comprehensive and accurate. All fit and proper reassessments must take consideration of the following, at a minimum:
| a. | Information collected in the prescribed form; | | b. | Annual and other appraisals; | | c. | Internal records, including disciplinary actions; and | | d. | Annual and other Board and Senior Management collective assessments.
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| | Documentation
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| 6.14 | Licensees must explain the Central Bank’s documentation requirements to the Authorized Individual. |
| 6.15 | The Licensee must collect sufficient and appropriate information and documentation to assess whether a Person meets the fit and proper requirements. The information to be collected and its assessment may differ depending on the role of the Person being assessed. |
| 6.16 | Licensees must ensure that the prescribed forms are filled completely and accurately and sign off on the forms to indicate that all required reviews, assessments and verifications have been completed. |
| 6.17 | The Central Bank may request any information or documentation from a Licensee and/or Authorized Individual, it deems necessary to support an application for Authorisation. |
| 6.18 | The Central Bank will not commence its review of an application for Authorisation for any Person until all required information and documents have been received. If the complete set of documents is not received within the period specified by the Central Bank, the application request may be closed off and a new request for Authorisation may need to be submitted, where applicable. |
| 6.19 | Where the Central Bank requests the submission of additional information and/or documents, the timeframe set by the Central Bank for submission must be met by the Licensee. Failure to provide the information and/or documents within the timeframe may result in the application request being closed off and the need for the Licensee to submit a new request for Authorisation, where applicable. |
| 6.20 | Licensees must immediately notify the Central Bank of any material change to documents and/or information provided to the Central Bank as part of application for Authorisation. |
| 6.21 | Licensees must validate, authenticate, verify and/or review all relevant documentation, where applicable, as part of the Fit and Proper Process. Unless otherwise established in separate Regulations, the following documents, where applicable, should be assessed and provided to the Central Bank as part of the application for Authorisation of an Applicant. The Central Bank may prescribe the documentation required for assessments within individual Licensees or holders of specific Licences.
| a. | Fully completed and signed form/questionnaire, as prescribed by the Central Bank;
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| | Applicant Information:
| b. | Copy of passport; | | c. | Copy of second form of national photo identification (for example, national ID or driver’s license); | | d. | Copies of any other passports held; | | e. | Evidence of previous nationality or Marsoom letter; | | f. | Copy of Emirates ID; | | g. | UAE residence visa; | | h. | Coloured photograph (passport size and with white background); | | i. | Complete Family Book; | | j. | No objection/National Service Letter from the UAE Ministry of Defense for UAE Citizens under the age of forty (40); | | k. | Comprehensive, current resume or curriculum vitae of the Applicant which includes detailed information on qualifications and work experience of the Person; | | l. | Offer letter and employment contract and/or card; | | m. | Proof of previous employment including UAE experience certificates; | | n. | Attested academic certificates; | | o. | Qualification and training certificates; | | p. | Any other professional certificates; | | q. | Valid certificate of good conduct (police clearance) addressed to the Central Bank; | | r. | Recent, original stamped banker’s or other financial reference; | | s. | Recent professional references (including from previous employers which are Licensees) and/or character references; and | | t. | Proof of relevant anti-money laundering/combatting the financing of terrorism and sanctions screening.
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| | Licensee Information:
| u. | Approved job description for the proposed function; | | v. | A list of all of the other roles that the Person currently holds and the expected time commitment for each role (where permitted); | | w. | The report documenting the results of the Fit and Proper Process for the Person; | | x. | Self-declaration by the Person that they have sufficient time to dedicate to all the mandates confirmed, by the Licensee; | | y. | Updated trade licence of the main branch of the Licensee; | | z. | Appointment approval request letter addressed to the Central Bank; | | aa. | Board approved authorisation instrument for the Person signing on behalf of the Licensee; | | bb. | Resignation letter of the former employee; | | cc. | The Licensee must confirm that it has assessed the Collective Suitability of the Board and provide justification on how it has determined that the appointment of the Person would be a strategic and effective fit with the other members of the Board and contribute to maintaining or improving the Collective Suitability; and | | dd. | Any other information or documents requested by the Central Bank.
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| 6.22 | The Central Bank may amend the information requirements for an Authorisation request, at its sole discretion, on a case-by-case basis. |
| 6.23 | Where the Licensee has found the Person deficient in any of the fit and proper assessment factors, a detailed explanation of the mitigating or compensating factors must be submitted to the Central Bank. If the Person does not fully meet the qualification or experience requirements, the Licensee is required to submit the written justification for wishing to proceed with the appointment, including compensating factors or plans for timely remediation, in the case of qualification requirements.
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